BIAM stays on top despite 6% fall in June

The unpredictable face of markets in June saw the value of the Rehab Great Investment Race fund dip slightly, but gains of almost €100,000 remained in place at the end of the month.

The main reason for the slight drop was a one-month fall of 6.5 per cent in the fund invested by Bank of Ireland Asset Management (BIAM).

BIAM's Mr Chris Reilly admitted yesterday that his strategy of keeping most of his fund in one stock (McInerney) had not paid off last month, but he remained confident in the company's ability to deliver good returns for the charity.

In fact, he said, last month's losses had already been won back. BIAM's one-month negative return must also be placed in the context of Mr Reilly's performance to date. His fund remains far and away the strongest in the race, with a total return of 71.5 per cent at the end of June.

Moving up from fourth to second place in June was Hibernian Investment Managers (HIM), where investments delivered a monthly return of 5.6 per cent. The company has, at this point in the race, gained a total of 12.9 per cent.

Dr Dara Fitzgerald of HIM said the portfolio had benefited from its concentration on Pacific Basin stocks, which were boosted by the dissipation of SARS fears and helpful currency factors.

HIM locked in its win towards the end of the month by moving into cash.

Mr Fitzgerald said the company would maintain this strategy until the markets offered more clarity.

Montgomery Oppenheim slipped one place into third position, punished by a negative return of 1.5 per cent.

Fund manager Mr Seamus Kelly said an investment in Elan had been ill-timed but added that he was hopeful of more positive returns this month. The firm has kept half of its portfolio in global equities so that it can gain from exposure to all sectors.

KBC was pushed up one position to fourth in June, helped by a 4.5 per cent return on its portfolio. Like HIM, KBC was assisted by strong exposure to Asian equities, with US holdings also generating benefits. KBC's Mr Noel O'Halloran said the firm was likely to stick with its strategy.

Irish Life Investment Managers (ILIM) dropped two ranks to fifth over the month, having concentrated the firm's portfolio on European equities.

ILIM saw its fund drop 5 per cent drop, with investments in Elan and Aegon proving particularly unhelpful.

Despite remaining in sixth place in June, Setanta Asset Management succeeded in achieving a positive return on its portfolio. The 1.8 per cent gain still leaves the company's fund under water, however.

Mr Gary Connolly of Setanta said he had maintained a strategy of individual stock picks in June and had benefited from generally positive markets.

The firm had 28 per cent of its fund in cash in June and may increase that allocation going forward, according to Mr Connolly.